The IRS started receiving and processing 2022 tax returns on January 23, 2023, officially starting tax season.
NBC News reported that Americans earned an average refund of $3,253 last year for their 2021 tax returns.
Here’s what you need to know about how long you could have to wait for your refund check, even if we have yet to see how the average refund size Americans will get in 2023 will compare to refunds from the previous year.
The IRS urges millions of taxpayers from 22 states to hold off filing their tax returns, as they are uncertain whether to make “middle-class tax refund” a taxable income. (Photo: Taxes for Expats)
IRS Reveals When You’ll Expect To Get Your 2022 Tax Refund
Marca said IRS told the American taxpayers that the eFile technology enables the government to distribute refunds through direct deposits in only eight days after they utilize eFile.
According to the IRS’s official website, more than nine out of ten refunds are typically issued within 21 days.
Tax returns may take longer in particular circumstances because they may need more review.
However, even though the IRS will accept your return, it won’t be able to provide a refund until February 18 if you’re claiming the Earned Income Tax Credit or Additional Child Tax Credit.
Check the Where’s My Refund? tool on the IRS website for a more individualized assessment of your refund status. Your social security number, filing status, and the precise refund amount must all be included on your return.
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When to File Tax Return
Normally, the IRS advises everyone to submit their taxes as soon as possible. This will give you plenty of time to fix any errors or last-minute pitfalls before the deadline on April 18, 2023. However, this year, the IRS is warning every taxpayer who got a special tax break or payment tied to inflation from their state.
Associated Press reported that Alaska, Virginia, California, South Carolina, Colorado, Rhode Island, Delaware, Oregon, Florida, New Mexico, Georgia, Massachusetts, New Jersey, Maine, Indiana, Minnesota, Illinois, Idaho, and Hawaii are among the states that offered some kind of relief payment last year.
If you got such payments from your state, the IRS advises delaying filing so they can determine further advice on how to handle the relief. The intention is to prevent these taxpayers from filing revised returns.
5 Homeowner Tax Credits and Deductions
Meanwhile, CNet said homeowners may be eligible for certain tax credits and deductions when to file their 2022 tax returns. Here are a few key ones to keep in mind:
- Mortgage interest deduction: If you have a mortgage on your home, you can deduct the interest you paid on the loan during the year, up to a certain limit. For 2022, the limit is $750,000 for new mortgages or $1 million for mortgages taken out before December 15, 2017.
- Property tax deduction: You can deduct state and local property taxes you paid during the year, up to a limit of $10,000. This includes taxes on your primary residence as well as any vacation or investment properties you own.
- Energy efficiency tax credits: If you made certain energy-efficient home improvements in 2022, such as installing solar panels or upgrading to an energy-efficient HVAC system, you may be eligible for a tax credit of up to 26% of the cost of the improvements.
- Home office deduction: If you use a portion of your home regularly and exclusively for business purposes, you may be able to deduct related expenses such as utilities, insurance, and maintenance.
- Capital gains exclusion: When you sell your primary residence, you may be able to exclude up to $250,000 of the gain from your taxable income if you are single, or up to $500,000 if you are married filing jointly, as long as you meet certain ownership and use requirements.
It’s important to note that not all homeowners will qualify for all of these credits and deductions, and there may be additional requirements or limitations to consider. Consult with a tax professional or refer to IRS publications for more detailed information.
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